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| Birthplace of marketing- my grain's better than theirs |
Marketing is the most ancient profession. When the first farmer took his basket of grain to the village and declared that his was better and cheaper than the other farmers’, markets and marketing were born.
The story told is still the same today, just many layers of complication have been laid over the top. The medium can too-often obscure the message.
Right now the media are going through major changes: the internet and smart phones are challenging the press and the air media, the lines of communication and the channels to market are blurring. That farmer with his grains of wheat risks getting lost in the confusion. This is you, the business person, I’m talking about.
Social media is the buzz today. New marketing companies are popping up, existing advertising agencies have all attached a “social media department” of one sort or another, and a lot of clients are being persuaded to pour more of their budgets into the field.
Which is all fine, you have to stay current. But in all the excitement it’s easy to lose sight of the objective.
Marketing guru Al Ries describes it as the difference between tactics and strategy. Clever web sites, viral commercials, smart phone based competitions, swipe codes on magazines and posters are all tactics in the battle for the consumer’s attention.
But after a couple of successes comes the danger of the tail wagging the dog. Too much energy, money and talent get concentrated on tactics like web apps and generating a few hundred thousand hits on your latest contest, while the main strategy gets neglected.
This is why we see so many campaigns that are poorly put together in their quality and thinking. Dull, unimaginative tv commercials, tombstone newspaper ads (they’re the kind that state the product and very little else. You are assumed to know the product’s qualities and price so they don’t tell you.) Ads that spend more space telling you how to activate their web page than in selling the product.
Certainly listen to the bright young things and their clever ideas, pick and choose. But in front of you, keep focussed on the strategy. What is the objective and where is your customer to be found?
Let me give you the example of a master of strategy. I am awestruck at the cool head that followed this through.
As you know, Facebook has been the most successful of the social media. Their recent Initial Public Offering was huge, raising $38 a share - potentially $75 billion. What it will eventually be worth, will be shaken out by history.
But Peter Thiel, billionaire founder of Pay Pal, saw its potential eight years ago and invested. He patiently waited until the offering was completed and sold a chunk of his shares early, at a strong price. A few days ago he sold most of his remaining shares.
The share price has dropped considerably so he only made $19 a share this time around, but I don’t think he minded. Coming in as a favoured “early investor” he had acquired some 10 per cent.
How much did he pay for this? $500,000. How much have his recent sales netted him? Over one billion dollars. And that’s how the rich get richer.
I doubt you have a billion-dollar idea in your grasp. But you did initially foresee the potential and rewards of what you’re doing now. That’s your grain of wheat. Keep it clear in your mind. Then in the midst of all the excitement and hoopla that invade your business days, you’ll have your strategy to keep you on course.
ray@ebeatty.com
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